Comprehensive Report on Chanel's Marketing Fundamentals and Strategies

This report provides a detailed analysis of Chanel's marketing fundamentals, including market processes, stages, and the marketing mix. It explores Chanel's approach to building strong customer relationships and creating value, emphasizing their understanding of customer needs and wants within the marketplace. The report delves into the company's marketing strategies, such as production, product, selling, marketing, and societal concepts, alongside integrated planning and customer relationship management. Furthermore, it examines market research methods employed by Chanel and the influence of both internal and external factors on its marketing environment. The report also analyzes stakeholder engagement, including shareholders, customers, and suppliers, and their impact on the company's marketing activities, incorporating a stakeholder analysis model. Finally, the report provides a comprehensive overview of Chanel's strategies within the fashion industry.

MARKETING
FUNDAMENTALS

Table of Contents
INTRODUCTION...........................................................................................................................3
Market processes and stages in marketing environment........................................................3
Stakeholder engagement and their impact on the marketing activities of an organisation....7
CONCLUSION.............................................................................................................................13
REFERENCE.................................................................................................................................15
INTRODUCTION
Marketing fundamentals involves all the necessary and basic functions, consents and
models of the marketing (Weinstein, and McFarlane 2017). Which are crucial for any business

organization in order to get success with the aid of proper marketing management. Marketing is
the process which involves multiple sub process and steps, to produce the market influencing
services or product. Along with management of product promotion, advertisement and sealing of
the products. In the marketing fundamentals stakeholders are the important resources or assets
which has to be consider in marketing planing. For the effective marketing planing there is one
the best strategy known as marketing mix. Chanel is the fashion company which offers the
multiple fashion clothes and accessories. Its headquarters in Neuilly-sur-Seine, France
London UK, Chanel was founded in 1909 as a house of Chanel. This report is
considering the marketing process, stages and marking mix strategy of Chanel, along
with the study and analysis of their stakeholders management strategy.
Market processes and stages in marketing environment
Building of strong customer relationships and creating value for them is what marketing
framework does for its valuable consumers. Chanel, designers company is one such corporations
that follows high standards of marketing providing clear view of their core values and company
environment as well as culture. The organisation believes in innovation, transparency, growth in
the form of productivity and employee enhancement with out of the box thinking techniques
adopted by them, diversity of manpower from different backgrounds, new collaborations and
accountability for every event or activity.
Chanel is a French fashion designing company mainly highlighting women trends and
clothes ready to wear. Also, the online sites and stores showcases girl accessories and luxury
items having elegance in their dresses,suits, trousers, perfumes and jewellery. The company, has
successfully adopted various processes influencing its operations in the marketing environment
consisting of both internal and external factors discussed below:
Understanding of customer needs and wants at the marketplace – Market research states that
that understanding consumers help company build demand of market offerings satisfying needs
of the consumers (Woodside, and Fine2019). This promotes building of long term customer
relationships.
Formation of customer driven strategy of marketing: While designing a Strategic plan , it is
important for the chosen company to define the target market and know to whom or how to serve
to the consumers by selecting a value proposition (Wagner, 2018). Chanel also adopted multiple
concepts for construction of marketing strategy that are-

Production concept: As consumers today are attracted towards affordable quality
products available at reasonable prices. Chanel therefore focusses on improving its efficiency in
production and distribution of products.
Product concept: Consistent product improvement results in advancing its quality,
performance and creative innovation.
Selling concept: Now a days large scale selling and promotion of a particular product
influences the consumers to buy. The companies today have the potential to sell what it makes
not just what the market wants.
Marketing concept: By identification of needs and wants of the target market,
organisations goals are achieved with delivering of customer satisfaction.
Societal concept: Society well being delivers value to customers in the long run and
should always be a part of marketing strategies of the company.
Building of Integrated planning in marketing: Such marketing plans add a superior
value to customers of the firm. By defining how to create value , marketer outlines and develop
plans for target market with the help of 4Ps marketing mix tools transforming plans into actions.
Building of profitable customer relationships: Companies increase their share of
customer portion by acquiring profitable relationships with differentiated category of products.
Customer relationship management is an overall process that aims at producing high customer
equity value to all its consumers.
Value acquired from customers: Loyalty is a key feature that acquires most of
profitable customers in an organisation considering quality and price of the product. According
to market research, a better way to measure performance of company in relation with consumer
equity is a deep analysis on current sales and market share of Channel organisation.
Market research and ways of implementing
It is a form of technique used by all organisations to collect information of business
environment both externally and internally (Muniesa, and Giménez, 2020). Chanel at various
levels uses market research for better understanding of target market and competition in
consumer market. Also, organisation utilizes gathered information from research to design
products in better manner, improve experiences of past or current users, and accordingly design a
message that help company get quality leads and attract them by improving their rate of

converting them as soon as possible. There have been four common methods for researching in
marketing that is through taking direct surveys, taking insightful interview, focusing on specific
groups and observation on people. Observation can be both overt and covert in form. Overt
observation involves direct communication of marketer with customers by watching their
experience while using the product. Whereas Covert observation means indirect studying of
product users “into the wild”. This can be done by analysing customers to whom your product is
sold and is using it on a regular or initial basis.
Stages of Marketing and Environment
Marketing environment is a firm's ability to maintain successful business and customer
relationships depending on the physical & social factors for effective decision making in an
organisation. Chanel, designers company follows the four stages of marketing ensuring
development mentioned in following points:
Production Orientation: This stage defines the philosophy of marketing . It states that a
customer is willing to buy products that are available in the market only with satisfactory prices.
The philosophy therefore focusses on increased production of selected company, reduction and
control over costs, Increased sales volume and profitability.
Product Orientation: This stage philosophy signifies the importance of good quality of
products. For brand loyal consumers, quality goods need no efforts to be sold but they sell
themselves to their potential customers. Chanel concentrates on setting good standards fro their
products with improved consistent quality every time. Also satisfactory quality of a product
results in greater profits with increased sales.
Sales orientation: This stage lay emphasis primarily on clearance of stocks. Chanel also
does marketing of its products in bulk earning profits on selling high volume quick sales
(Muniesa, and Giménez, 2020). Social media, websites, campaigns and many other promotional
activities take place in the aggressive sale of the products.
Marketing Orientation: While selling orientation mainly concentrates on needs of the
seller, marketing orientation concentrates on needs of the buyer/owner of the entity. Chanel does
take decisions and make plans on behalf of the customer wants or needs. With help of
coordinated activities set consisting of functions as well as actions of employees, Chanel satisfies

its customer needs irrespective of business they work in (Sheth and Parvatiyar 2020). Therefore
such orientation of marketing does not just require people of marketing department but also all
the other employees and managers to be customer oriented for efficiency of work. Also it is
known if a firm is marketing oriented, then it produces good and services as per consumer
demand rather than what firm produces according to them.
Marketing mix
It refers to set of tools which helps management of a company to accomplish it's
objectives. Previously marketing mix of an organisation consist of product, place, price and
promotion, but later due to increasing market demands it included people, politics, positioning
and packaging. Marketing mix of Chanel are as follows:
Product: It refers to product or service being offered by company to it's consumers. Chanel
provides high class quality products and because of their innovative approaches it have a good
reputation in the marketplace.
Place: It refers to location where companies product or services will be offered to their
consumers. Chanel have a huge distribution channel for it's products across the world. It also
provides after purchases services to it's customers which adds to their living standard.
Price: It is the most important factor that depends on success or failure of a company, prices of
the commodity should be inter-related to its quality. Chanel delivers good quality products with
appropriate prices.
Promotion: It is an activity of providing information of an existing product or new product
being launched in marketplace (Kotsi, F and Slak Valek, 2018). Chanel keeps in mind the
expensive cost of promotion which will ultimately adds up to cost of product, it takes appropriate
steps in order to provide it's product at the minimum possible price to it's valuable customers.
People: They are most important part of all tools used in marketing mix as they are the one who
are responsible for converting the raw materials of an organisation to finished products.
Employees working in Chanel are provided with good working environment and they are purely
dedicated towards objective of profit maximisation of an organisation.
Politics: It plays a huge role in deciding up of policies and strategies formed by companies for
it's product promotion. As company being corporate body can't go against rules and restrictions
possessed by the government of a country (Blut, Teller and Floh 2018). The management of
Chanel keeps in mind all government policies while in formulation of it's strategies.

Positioning: It refers to analysation of importance of companies product in their customers
mind, like how they prefer it's product over any other companies product. Chanel was
established in 1910 and has a good reputation in a marketplace it's customers are loyal more like
addicted to the companies products.
Packaging: It plays an important role in proving up of the quality of product being sold to
customers. It shows off the quality of product being offered and also justifies it's prices. It is been
said that packaging plays an important role in deciding companies sale. Chanel delivers best
quality products with justified prices wrapped in attractive packaging that helps the company to
attract more customers which helps in increment of sales as well as growth of an organisation.
Stakeholder engagement and their impact on the marketing activities of an organisation
Stakeholder is can be a individual or the group of the people who posses the
crucial role in the business planing and in its success. Stakeholder and organisation is
some time vies-versa for each other, because some time they effect each other. The
stakeholders of the company's is, employees, stockholder, customers, and shareholder
of the company. Stakeholder exist in both side of the organisation, outside and within
the organisation, some invest their money on project, programmes and some on their
product or services. In prospect of Chanel their stoke-holders are shareholders,
community, media, suppliers, costumers, regulatory bodies, business partner and so on.
Stakeholder engagement is the systematic process analysing stakeholder values
and factors effecting them, then it involve systematic planning of the stakeholder
management and influencing techniques and finally the implementation and action of
the plans to influence the stakeholders. It main function is to analyse the needs and key
values of the stakeholder so that it can be met perfectly for effective results.
Stockholder analysis model in context of Chanel
Stakeholder analysis is the primary step towards the stakeholder management,
as it provide some key benefits for business project (Hemanth, 2018). Such as it aid to
shape the project effectively , as the stakeholder suggestions and opinion support in the
production of quality project. Stakeholder analysis helps to get the resources support
from the side of stakeholders (Viglia, Pera, and Bigné, 2018). The proper analysis of the
stakeholders with effective communication aid to understand the project positive and

negative point so that we can improve it. The support of the stakeholders aid to become
winner of the business game.
For stakeholder analysis there is the three step model, where the first step is the
identification of company stakeholders, then second step is to analysis of their power,
interest and values which can influence and effect the project (Leonidou, Christofi,
Vrontis 2018). Then the final step is the selection of the stakeholders which need to be
focused or consider more in the project. In order to win their support for the business.
Once the stakeholders analysis get completed organisation become able to manage
them effectively. Their is the brief explanation of all three steps in context to the Chanel
fashion company is given below.

 Identification of stakeholders- For identification of the organisation
stakeholders, organisation project professional need to think about the
individuals and groups of the people, who basically get effected by the company
and who posses the power, influence and interest on organisation success or
failure. In Chanel organisation they are conducting the proper identification of
their stakeholders in order to management them perfectly. Chanel stakeholders
are stoke-holders are shareholders, community, media, suppliers, costumers,
regulatory bodies and many more.
 Analysis of the power and interest of the stakeholder in company- Is the
supportive step for identification of stakeholders. Where organisation
professional conduct deep study of customers, suppliers, competitors,
shareholder and others power interest and influences on organisation planing
and growth.
 Selection or prioritization of stakeholders- Once the identification of the
organisation stakeholders get completed, then it need to deeply analyse power of
the stakeholders that how it effects, it can be encouraging and blocking. Some of
the stakeholders may posse interest on the organisation project and get ready to
support, some of them are waiting for their services and some want to bit it. So it
need to select some more supportive and impacting stakeholders which can be a
priority for company. Their is the power and interest measuring grid which aid to
prioritize the most important stakeholders (Amaral and Mohallem 2017). This
metric help to classify them on the basis of their power over the company plans
and functions,and their interest on organisation product or services and interest
in organisation success or failure.

Allocation of the stakeholders into the grid according to the following instructions.
- The stakeholder how poses high power and high interest. Is consider in the grid as
manage closely and in this part professional need to give the higher priority, along with
their engagement and satisfaction. Chanel consider PRADA as its competitor and
manage their competition closely in order to meat competitive ages.
- The stakeholders how poses the less interest but highly power is can be consider in
the grid as keep satisfied. The people how posses higher power but lower interest in the
organisation, should be satisfied by the company in regular basis and consider at every
plane. But company should take care of this that they can not bothered so much.
Chanel is considering their customers and sponsors at this position and try to provide
the every required services by the aid of marketing research and awareness
programmes.
- High interest, low power people how posses the higher interest in organisation at
different terms but posse the lower power, should be informed for every project in order
to ensure the right and wrong of the project. Chanel in their planing consider the
supplier, developers and tester at this position and make them informed about
organisation needs of material, resource and new techniques. In order get up to dated
about the issues and improvement part.

- The last category is Low power and less interested peoples such as the project
mangers and staff and help-desk which should be monitor in the every step of the
project. Chanel having the well skilled staff and project manager in their project
management group and they monitor their team at every step for progressive result.
 Understanding the stakeholders- The final step is to make strong relationship
between the stakeholder and understanding. Organisation has to involve the
evaluation of stakeholders feelings for the company project, and it is important for
the organisation to communicate with them and engage them in order to get
guidelines and current planning for the project. There are some points which can
help the professionals to understand stakeholders.
 Analysis of Financial and emotional interest of the stakeholders in the outcomes
and project of the organisation. In both negative and positive terms.
 Which of action and function of the organization motivate the stakeholder very
much.
 Identification of their services and information requirement of the stakeholder
from organisation, and identification of one of the best way to communicate with
them.
 Analysis of their opinion and suggestion on the organisation work or project.
Then analysis its positivity and negativity (Taylor, Ryan and Johnston 2020)(Kaur
and Lodhia 2018)...
 Analysis of the factors which influence the opinions of the stakeholders. And then
identification of factors which effects the organisation opinion for them.
 Analysis of the factors or elements which can change their negativity into the
positivity, and the evaluation of strategies which can aid to win their support in
success of the project.
 Identification of the possibility to win around their opposition, And then
development of the management strategy's for it.
Stakeholders engagement play very crucial role in the marketing activities as they are
the part of project, such as customers are one of the stakeholder which play very crucial
role in the marketing planing. Because in the marketing plan there is the importance of

stakeholder (costumer) for their needs, according to which organisation plan for their
product and services. The other most important stakeholders of the company is
shareholders, for organization operational function they conduct the marketing
research, in order to analyse the availability of different assets of the operation (Nouri,
2018). And one of the assets is money and financial support which can be effected by
the % of shareholders. Chanel is managing their all the important stakeholders with
effective marketing and engagement techniques.
Impact of the stakeholder engagement in marking activities
Chanel is one of the top company in fashion industry. It has various stakeholders. These
Stakeholders are employees, managers, suppliers and customers etc. that can affect the marketing
activities of the company. Engagement of stakeholders refers to the process in which
stakeholders of the company interacts and communicate with each other to achieve the objectives
of the organisation. Stakeholders impact through various techniques that is by Building trust-
stakeholders brings trust on marketing activities. Marketing activities like data collections,
content creation and collecting reviews are managed by managers of the company. Chanel
company performs various activities to attracts its customers. Managers have certain budget in
which activities are to be done ans also it needs to compete with its competitors in that budget
only. Managers has made some policies that needs to be follows by the marketers. Customers are
the external stakeholders that impact marketing activities like change in customer trends,
preferences can severely affect the organisation. This can also lead to loss of company.
Stakeholders engagement impacts on marketing activities in such a way that it leads to increase
or decrease in profits of the company. It helps the marketers in conducting new advertisements
and new capital to adjust their budget. This increased the investments and profitability of the
company.
Importance of the stakeholders engagement in organisation
There are many benefits why stakeholders engagement is important for the
organisation. Some of them are risk management, brand enhancement, improving
productivity. Stakeholders engagement helps the organisation in risk management as
working with the all stakeholders brings stable in the organisational environment. As it
reduces the level of risk and improves governance of the organisation. Also, it is